Jugnoo aims to become the largest auto-rickshaw aggregator in the country

Startup Jugnoo is an auto-rickshaw aggregator and is proving why autos are the real thing when it comes to commuting.Vinay Dwivedi | ET Bureau | January 11, 2016, 08:08 IST

Startup Jugnoo is an auto-rickshaw aggregator and is proving why autos are the real thing when it comes to commuting.Given that the taxi-aggregation business has witnessed a lot of consolidation, floating another such venture would not seem a particularly bright idea.

Unless, you happen to take issue with what a taxi is, and why a ‘Western copy’ of the concept needn’t be as effective in India. Samar Singla, 30, an IIT Delhi graduate and a serial entrepreneur, presents a well-reasoned case for starting Jugnoo, an auto-rickshaw aggregation business, even as several relatively entrenched taxi-aggregators have had to shut shop.

“For a common Indian, the auto-rickshaw serves the same purpose as a taxi. It is cheap and convenient, and most people use it to commute. The auto-rickshaw is really our taxi,” says Singla, Co-founder and CEO, Jugnoo.

The potential of this relatively untapped market sparked Singla’s interest and, in November 2014, he founded Jugnoo along with Chinmay Agarwal, 28, also an IIT Delhi alumnus. “Given the popularity of auto rickshaws and their economic efficiency, it only made sense to organize this space using technology,” says Singla.

Solving the common commuter’s problem by utilising the available resources to their best, aided by technology, besides the market potential, was also a motivating factor behind Jugnoo’s launch, says Singla.

Initially, it was tough to convince auto rickshaw drivers to make use of smartphones to their advantage and join Jugnoo. “Most auto drivers have no problems using smartphones, but they appear reluctant to use it for activities that can impact their livelihood directly,” says Singla.

It took a lot of convincing and training to get auto drivers comfortable with Jugnoo’s platform. The stress on induction and training continues, even as hastening the process of adding drivers and training them continues to be this startup’s foremost challenge. “There are cities where it has taken a lot of time for our drivers to fulfill the document checklists and verification due to lack of awareness and pre-arrangements,” says Singla.

Ensuring that drivers comply with the legal and training requirements is as much a priority as business expansion, say the founders. “These processes may be time consuming but are essential,” says Singla. Jugnoo has tasked its regional teams to help drivers fulfill the legal requirements.

The founders’ bet on the unorganised autorickshaw market has worked. In just over an year, Chandigarh-based Jugnoo has emerged a promising player in the transport-aggregation business. It has a presence in 22 cities, with 6,000 auto-rickshaws on its platform, and is clocking 30,000 rides a day.

Singla, who invested close to Rs 1.5 crore - his savings and loans from friends and family - to kickstart the business, is confident that Jugnoo will see breakneck expansion in the next one year.

The startup has set a target of reaching 10 lakh rides a day and increasing its presence to 100 cities. The company, whose annual revenue stands at Rs 1 crore, has set a target of Rs 75 crore for 2016 - gross revenue or GMV of Rs 750 crore. Ask Singla if the targets are too steep, and he is quick to point out that Jugnoo has been growing at a compounded monthly growth rate (GMV) of over 65% for the past six months.

The startup is also running pilots on business-to-business deliveries (food, groceries, etc.) to leverage the strength of its auto-rickshaw fleet. “We are trying out several things but our core focus is on becoming the largest auto-rickshaw aggregator in the country,” says Singla.